7 U.S. Code § 1421 - Price support

The Secretary shall provide the price support authorized or required herein through the Commodity Credit Corporation and other means available to him.

(b) Authority of Secretary; factors considered

Except as otherwise provided in this Act, the amounts, terms, and conditions of price support operations and the extent to which such operations are carried out, shall be determined or approved by the Secretary. The following factors shall be taken into consideration in determining, in the case of any commodity for which price support is discretionary, whether a price-support operation shall be undertaken and the level of such support and, in the case of any commodity for which price support is mandatory, the level of support in excess of the minimum level prescribed for such commodity:

(1) the supply of the commodity in relation to the demand therefor,

(2) the price levels at which other commodities are being supported and, in the case of feed grains, the feed values of such grains in relation to corn,

(3) the availability of funds,

(4) the perishability of the commodity,

(5) the importance of the commodity to agriculture and the national economy,

(6) the ability to dispose of stocks acquired through a price-support operation,

(7) the need for offsetting temporary losses of export markets,

(8) the ability and willingness of producers to keep supplies in line with demand and (9), in the case of upland cotton, changes in the cost of producing such cotton.

(c) Compliance by producer; program for diverted acres

Compliance by the producer with acreage allotments, production goals and marketing practices (including marketing quotas when authorized by law), prescribed by the Secretary, may be required as a condition of eligibility for price support. In administering any program for diverted acres the Secretary may make his regulations applicable on an appropriate geographical basis. Such regulations shall be administered

(1) in semiarid or other areas where good husbandry requires maintenance of a prudent feed reserve in such manner as to permit, to the extent so required by good husbandry, the production of forage crops for storage and subsequent use either on the farm or in feeding operations of the farm operator, and

(2) in areas declared to be disaster areas by the President under the Disaster Relief and Emergency Assistance Act [42 U.S.C. 5121 et seq.], in such manner as will most quickly restore the normal pattern of their agriculture.

(d) Time of determining levels

The level of price support for any commodity shall be determined upon the basis of its parity price as of the beginning of the marketing year or season in the case of any commodity marketed on a marketing year or season basis and as of January 1 in the case of any other commodity.

(e) Processors’ assurances; payment if assurances inadequate

(1)Whenever any price support or surplus removal operation for any agricultural commodity is carried out through purchases from or loans or payments to processors, the Secretary shall, to the extent practicable, obtain from the processors such assurances as he deems adequate that the producers of the agricultural commodity involved have received or will receive maximum benefits from the price support or surplus removal operation.

(2)

(A)If the assurances under paragraph (1) are not adequate to cause the producers of sugar beets and sugarcane, because of the bankruptcy or other insolvency of the processor, to receive maximum benefits from the price support program within 30 days after the final settlement date provided for in the contract between such producers and processor, the Secretary, on demand made by such producers and on such assurances as to nonpayment as the Secretary shall require, shall pay such producers such maximum benefits less benefits previously received by such producers.

(B)On such payment, the Secretary shall—

(i)be subrogated to all claims of such producers against the processor and other persons responsible for nonpayment; and

(ii)have authority to pursue such claims as necessary to recover the benefits not paid to the producers.

(C)The Secretary shall carry out this paragraph through the Commodity Credit Corporation.

This Act, referred to in subsec. (b), is act Oct. 31, 1949, ch. 792, 63 Stat. 1051, known as the Agricultural Act of 1949, which is classified principally to this chapter (§ 1421 et seq.). For complete classification of this Act to the Code, see Short Title note below and Tables.

The Disaster Relief and Emergency Assistance Act, referred to in subsec. (c), is Pub. L. 93–288, May 22, 1974, 88 Stat. 143, known as the Robert T. Stafford Disaster Relief and Emergency Assistance Act, which is classified principally to chapter 68 (§ 5121 et seq.) of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see Short Title note set out under section
5121 of Title
42 and Tables.

Pub. L. 104–127, title II, § 263(c),Apr. 4, 1996, 110 Stat. 974, provided that: “The amendments made by this section [repealing provisions set out as notes under this section and section
1446 of this title] shall be effective beginning with the 1996 crops of wheat, feed grains, upland cotton, and rice.”

“(a) In General.—Except as otherwise provided in this Act, this Act and the amendments made by this Act [see Tables for classification] shall take effect on the date of enactment of this Act [Dec. 13, 1991].

“(b) Inclusion in Food, Agriculture, Conservation, and Trade Act of 1990.—The amendments made by the following provisions of this Act shall take effect as if included in the provision of the Food, Agriculture, Conservation, and Trade Act of 1990 (Public Law 101–624) to which the amendment relates:

“(1) Section
201 [amending sections
5403,
5503,
5505,
5506, and
5822 of this title and provisions set out as a note under section
4201 of this title] (other than section
201(h) [enacting section
3125c of this title]).

“(c) Miscellaneous Amendments to Consolidated Farm and Rural Development Act.—The amendments made by section 701(h) of this Act [amending sections
1926,
1932,
1981,
1994, and
2000 of this title] to any provision specified therein shall take effect as if such amendments had been included in the Act that added the provision so specified at the time such Act became law.

“(d) Food and Nutrition Programs.—

“(1) In general.—Except as otherwise provided in this subsection, title IX of this Act [amending sections
1431e,
2012,
2014,
2015,
2017,
2018,
2020,
2025,
2026,
2028,
2029, and
2031 of this title, enacting provisions set out as notes under sections
2015,
2016,
2026, and
5930 of this title, and amending provisions set out as notes under sections
612c and
2012 of this title], and the amendments made by title IX of this Act, shall take effect and be implemented no later than February 1, 1992.

“(2) PASS accounts exclusion.—

“(A) In general.—The amendment made by section 903(3) of this Act [amending section
2014 of this title] shall take effect on the earlier of—

“(i) the date of enactment of this Act [Dec. 13, 1991];

“(ii) October 1, 1990, for supplemental nutrition assistance program benefits households for which the State agency knew, or had notice, that a member of the household had a plan for achieving self-support as provided under section 1612(b)(4)(B)(iv) of the Social Security Act (42 U.S.C. 1382a(b)(4)(B)(iv)); or

“(iii) beginning on the date that a fair hearing was requested under the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.) contesting the denial of an exclusion for supplemental nutrition assistance program benefits purposes for amounts necessary for the fulfillment of such a plan for achieving self-support.

“(B) Limitation on application of section.—Notwithstanding section 11(b) of the Food and Nutrition Act of 2008 [section
2020(b) of this title] (as redesignated by section 941(6) of this Act), no State agency shall be required to search its files for cases to which the amendment made by section 903(3) of this Act [amending section
2014 of this title] applies, except where the excludability of amounts described in section 5(d)(16) of the Food and Nutrition Act of 2008 [section
2014(d)(16) of this title] (as added by section 903(3) of this Act) was raised with the State agency prior to the date of enactment of the Act [Dec. 13, 1991].

“(3) Performance standards for employment and training programs.—The amendments made by section
908 [907, amending section
2015 of this title] of this Act shall take effect on September 30, 1991.

“(4) Recovery of claims caused by nonfraudulent household errors.—The amendment made by section 911 of this Act [amending section
2022 of this title] shall take effect on the date of enactment of this Act [Dec. 13, 1991].

“(5) Definition of retail food store.—The amendment made by section 913 of this Act [amending provisions set out as a note under section
2012 of this title] shall take effect on October 1, 1990, and shall not apply with respect to any period occurring before such date.”

“(a) In General.—Except as otherwise specifically provided in title I through this title [see Tables for classification], such titles and the amendments made by such titles shall become effective beginning with the 1991 crop of an agricultural commodity.

“(b) Prior Crops.—Except as otherwise specifically provided and notwithstanding any other provision of law, title I through this title, and the amendments made by such titles, shall not affect the authority of the Secretary of Agriculture to carry out a price support or production adjustment program for any of the 1986 through 1990 crops of an agricultural commodity established under a provision of law in effect immediately before the effective date prescribed by subsection (a).”

Pub. L. 101–239, title I, § 1001(a),Dec. 19, 1989, 103 Stat. 2106, provided that: “This title [enacting section
1433d of this title, amending sections
1444e,
1445b–2,
1446,
1464, and
1736s of this title, enacting provisions set out as notes under sections
1433d,
1444e,
1445b–2,
1446, and
1464 of this title and section
2278b–9 of Title
12, Banks and Banking, and amending provisions set out as a note under this section] may be cited as the ‘Agricultural Reconciliation Act of 1989’.”

Pub. L. 101–82, § 1(a),Aug. 14, 1989, 103 Stat. 564, provided that: “This Act [enacting sections
1508a and
1926a of this title and section
493 of Title
25, Indians, amending sections
1359,
1464,
1471d, and
1471e of this title and section
2202 of Title
16, Conservation, enacting provisions set out as notes under this section and sections
1359,
1464,
1926a,
1929a,
1941, and
1961 of this title and sections
2202 and
2203 of Title
16, and amending provisions set out as a note under this section] may be cited as the ‘Disaster Assistance Act of 1989’.”

Short Title of 1988 Amendments

Pub. L. 100–418, title II, § 2221,Aug. 23, 1988, 102 Stat. 1336, provided that: “This part [part II (§§ 2221–2227) of subtitle B of title II of Pub. L. 100–418, which amended section
1431 of this title and enacted provisions set out as notes under section
1431 of this title] may be cited as the ‘American Aid to Poland Act of 1988’.”

Pub. L. 98–180, title I, § 101,Nov. 29, 1983, 97 Stat. 1128, provided that: “This title [enacting sections
4501 to
4513 of this title, amending section
1446 of this title, and enacting provisions set out as notes under section
1446 of this title] may be cited as the ‘Dairy Production Stabilization Act of 1983’.”

Pub. L. 98–88, § 1,Aug. 26, 1983, 97 Stat. 494, provided: “That this Act [amending sections
1308,
1427,
1441, and
1444 of this title, repealing section
1347 of this title, and enacting provisions set out as notes under sections
1342,
1347, and
1444 of this title] may be cited as the ‘Extra Long Staple Cotton Act of 1983’.”

Act Oct. 31, 1949, ch. 792, title IV, § 414,63 Stat. 1057, provided in part that: “any provision of law in conflict with the provisions of this Act [see Short Title note set out above] are [is] hereby repealed.”

“(a) Promulgation.—As soon as practicable after the date of the enactment of this Act [June 20, 2000], the Secretary and the Commodity Credit Corporation, as appropriate, shall promulgate such regulations as are necessary to implement this title and the amendments made by this title [see Tables for classification]. The promulgation of the regulations and administration of this title shall be made without regard to—

“(1) the notice and comment provisions of section
553 of title
5, United States Code;

“(2) the Statement of Policy of the Secretary of Agriculture effective July 24, 1971 (36 Fed. Reg. 13804), relating to notices of proposed rulemaking and public participation in rulemaking; and

“(3) chapter
35 of title
44, United States Code (commonly known as the ‘Paperwork Reduction Act’).

“(b) Congressional Review of Agency Rulemaking.—In carrying out this section, the Secretary shall use the authority provided under section
808 of title
5, United States Code.”

Separability Provision for Pub. L. 101–624

Pub. L. 101–624, title XXV, § 2518, formerly § 2519,Nov. 28, 1990, 104 Stat. 4078; renumbered § 2518 by Pub. L. 104–66, title I, § 1101(h),Dec. 21, 1995, 109 Stat. 710, provided that: “If any provision of this Act [see Short Title of 1990 Amendment note above] or the application thereof to any person or circumstance is held invalid, the invalidity shall not affect other provisions or applications of this Act which can be given effect without regard to the invalid provision or application, and to this end the provisions of this Act are severable.”

Separability Provision for Pub. L. 98–180

Pub. L. 98–180, title III, § 305,Nov. 29, 1983, 97 Stat. 1152, provided that: “Except as otherwise provided in this Act [see Short Title of 1983 Amendment note above], if any provision of this Act or the application thereof to any person or circumstances is held invalid, the validity of the remainder of this Act and of the application of such provision to other persons and circumstances shall not be affected thereby.”

Exceptions From Transfer of Functions

Functions of Corporations of Department of Agriculture, boards of directors and officers of such corporations; Advisory Board of Commodity Credit Corporation; and Farm Credit Administration or any agency, officer, or entity of, under, or subject to supervision of said Administration excepted from functions of officers, agencies, and employees transferred to Secretary of Agriculture by 1953 Reorg. Plan No. 2, § 1, effective June 4, 1953, 18 F.R. 3219, 67 Stat. 633, set out as a note under section
2201 of this title.

Inapplicability of Section

Section inapplicable to 2002 through 2007 crops of covered commodities, peanuts, and sugar and inapplicable to milk during period beginning May 13, 2002, through Dec. 31, 2007, see section
7992(b)(10) of this title.

Section inapplicable to 1996 through 2002 crops of loan commodities, peanuts, and sugar and inapplicable to milk during period beginning Apr. 4, 1996, and ending Dec. 31, 2002, see section
7301(b)(1)(J) of this title.

Crop and Pasture Flood Compensation Program

Pub. L. 106–224, title II, § 257(a)–(d), June 20, 2000, 114 Stat. 424, 425, limited the per-person and total amounts payable from the Commodity Credit Corporation to compensate producers with covered land with respect to losses from long-term flooding during the 2000 crop year.

Pub. L. 106–31, title I, § 101,May 21, 1999, 113 Stat. 61, provided for crop loss assistance for multiyear losses due to disasters in two crop years during the five-crop year period beginning with the 1994 crop year.

Pub. L. 101–624, title XI, § 1148,Nov. 28, 1990, 104 Stat. 3517, directed Secretary of Agriculture to require producers, during sign-up period for commodity programs under section
1421 et seq. of this title in the 1992 calendar year, to complete survey regarding preference of producers, either to increase efficiency of their farming operation or to assist in meeting conservation requirements for farm, for redistribution of any crop acreage bases on each producer’s farm, to compile and analyze data collected from survey to determine potential increases and decreases in State, regional, and national acreage that would be planted to various program crops, potential commodity program costs or savings, and potential impact of such redistribution on competitiveness of United States agriculture in world markets, and, not later than Jan. 31, 1993, to submit to Congress results of survey.

Options Pilot Program

Pub. L. 101–624, title XI, subtitle E, Nov. 28, 1990, 104 Stat. 3518, as amended by Pub. L. 102–237, title I, § 114(a)(2),Dec. 13, 1991, 105 Stat. 1838, known as Options Pilot Program Act of 1990, authorized Secretary of Agriculture to conduct pilot program for each of the 1991 through 1995 crops of corn and for each of the 1993 through 1995 crops of wheat and soybeans, to determine whether regulated agricultural commodity options trading could be used by producers to obtain protection from fluctuations in market prices of commodities produced and impact of such trading on prices of the commodities, authorized terms and conditions for participation in pilot program, provided for consultation with representatives of commodity futures trading industry, and provided that the pilot program was to be carried out by and through the Commodity Credit Corporation, prior to repeal by Pub. L. 104–127, title I, § 191(i),Apr. 4, 1996, 110 Stat. 942.

Hurricane Hugo Forestry Assistance; Cost-Share Assistance

Pub. L. 101–624, title XXII, § 2235(b),Nov. 28, 1990, 104 Stat. 3960, directed Secretary of Agriculture to develop and implement cost-share program to provide financial assistance to owners of private timber stands that were damaged in 1989 by Hurricane Hugo.

Appropriations for Forestry Assistance and Double Cropping on Disaster Areas

Pub. L. 101–624, title XXII, § 2235(c),Nov. 28, 1990, 104 Stat. 3961, provided that benefits or assistance provided under section 2235 ofPub. L. 101–624or amendments made by such that (enacting provisions set out above and amending provisions set out below) were to be provided only to extent provided for in advance by appropriation acts and authorized appropriations for fiscal years 1991 through 1995.

Scarce Federal Resources

Pub. L. 101–624, title XXV, § 2515,Nov. 28, 1990, 104 Stat. 4075, authorized Secretary of Agriculture, after concurrence of certain Members of Congress, to rank by priority studies or reports authorized by Pub. L. 101–624and determine which of those studies or reports was to be completed, but directed Secretary to complete at least 12 of the studies or reports.

Recordkeeping Improvement

Pub. L. 101–624, title XXV, § 2516,Nov. 28, 1990, 104 Stat. 4075, which provided that section could be cited as “Agricultural Program Reporting and Recordkeeping Improvement Act of 1990”, directed Secretary of Agriculture, not later than 240 days after Nov. 28, 1990, to submit to Congress a report containing specific proposals for reducing and simplifying recordkeeping and other paperwork required of producers participating in programs administered by Secretary and directed Secretary to take appropriate action to integrate various data bases of Department relating to agricultural program data, and to facilitate sharing of relevant data among various agencies of Department.

Readjustment of Support Levels

Pub. L. 101–508, title I, § 1302,Nov. 5, 1990, 104 Stat. 1388–12, as amended by Pub. L. 103–66, title I, § 1301(b),Aug. 10, 1993, 107 Stat. 330, provided that, if by June 30, 1992, and by June 30, 1993, the United States had not entered into agricultural trade agreement in Uruguay Round of multilateral trade negotiations under General Agreement on Tariffs and Trade (GATT) the Secretary of Agriculture was to reconsider and adjust agricultural acreage limitation and price support and production adjustment programs and export promotion levels, as appropriate to protect interests of American agricultural producers and ensure international competitiveness of United States agriculture and that such provisions were to cease to be effective if President certified to Congress that failure to enter into such agreement was result in whole or in part of provisions of 19 U.S.C. 2191, or essentially similar provisions, not applying or in effect not applying during period ending May 31, 1991 (or during period June 1, 1991, through May 31, 1993, if condition of 19 U.S.C. 2903(b)(1)(B)(i) was satisfied) to implementing bills submitted with respect to such an agreement entered into during applicable period under 19 U.S.C. 2902(b), prior to repeal by Pub. L. 104–127, title II, § 263(a),Apr. 4, 1996, 110 Stat. 974.

Repayment of Advance Deficiency Payments

Pub. L. 101–220, § 14,Dec. 12, 1989, 103 Stat. 1885, provided that effective only for the 1988 crops of wheat, feed grains, upland cotton, and rice, produced by producers that qualified for assistance under section 201(a) ofPub. L. 100–387or section 101(a) ofPub. L. 101–82(set out below), if the Secretary of Agriculture determines that any portion of the advance deficiency payment made to producers for such crop under section
1445b–2 of this title had to be refunded, such refund could not be required to be made prior to July 31, 1990.

Pilot Project on Clean Grain Premiums

Pub. L. 100–518, § 3,Oct. 24, 1988, 102 Stat. 2587, directed Secretary of Agriculture to conduct study of schedule of premiums and discounts applied to loans made in accordance with this chapter to determine how premiums and discounts could be used to encourage production, marketing, and exporting of high quality, clean grain, to submit, not later than May 1, 1989, to Congress report on results of such study, to include recommendations with respect to schedule of premiums and discounts in such report, and to establish pilot project for 1989 crops of wheat, soybeans, and feed grains to test effectiveness of such recommendations, and to submit report describing result of project, not later than 180 days after end of 1989 marketing year for feed grains.

Emergency Crop Loss Assistance

Pub. L. 102–229, title I, Dec. 12, 1991, 105 Stat. 1712, as amended by Pub. L. 102–368, title VI, Sept. 23, 1992, 106 Stat. 1130, appropriated an additional $1,750,000,000, to remain available until expended, for losses associated with 1990 crops as authorized by Pub. L. 101–624, formerly set out below, and for losses associated with 1991 and 1992 crops under same terms and conditions.

Pub. L. 99–198, title XVII, subtitle E, §§ 1741–1743,Dec. 23, 1985, 99 Stat. 1643, 1644, as amended by Pub. L. 100–203, title I, § 1502,Dec. 22, 1987, 101 Stat. 1330–27, directed Secretary of Agriculture to conduct study to determine manner in which commodity futures markets and commodity options markets might be used by producers of commodities traded on such markets to provide price stability and income protection, extent of price stability and income protection producers might reasonably expect to receive from such participation, and Federal budgetary impact of such participation compared with cost of applicable established price support programs, to report results of study to Congress on or before Dec. 31, 1989, and in connection with such study, to conduct pilot program with respect to crops of wheat, feed grains, soybean, and cotton.

Farm Income Protection Insurance Program Task Force, Study, and Report

Pub. L. 97–98, title XI, § 1112,Dec. 22, 1981, 95 Stat. 1267, directed Secretary of Agriculture to appoint a special task force to study and report to Congress, not later than 18 months after Dec. 22, 1981, as to whether farm income protection insurance would provide the basis for an acceptable alternative to the commodity price support, income maintenance, and disaster assistance programs currently administered by the Department of Agriculture for the benefit of farmers.

Studies in Rice Price Support; Report to Congress; Termination Date

Act Aug. 28, 1954, ch. 1041, title III, § 315,68 Stat. 905, directed Secretary of Agriculture to study various two-price systems of price support and marketing which could be made applicable to rice and to submit to Congress on or before Mar. 1, 1955, a detailed report thereon.